MicroStrategy’s Bitcoin Accumulation Hits 190,000 BTC Amid Q4 Revenue Dip

MicroStrategy has increased its Bitcoin holdings, Michael Saylor revealed in a post on X on the sidelines of the company’s Q4 2023 results. MicroStrategy reportedly acquired 850 Bitcoin in January for $37.2 million, boosting its total holdings to 190,000 BTC.

The company’s aggressive acquisition strategy is evident in its recent purchase of 31,755 bitcoins since the end of the third quarter for $1.25 billion, averaging $39,411 per bitcoin.

MicroStrategy holds 190,000 BTC

As of February 5, 2024, MicroStrategy’s Bitcoin portfolio is a staggering 190,000 bitcoins, acquired at an average cost of $31,224 per bitcoin, totaling $5.93 billion. This strategic accumulation has positioned MicroStrategy as the largest corporate holder of Bitcoin.

According to Bitcoin Treasuries, MicroStrategy dominates 0.901% of the total BTC supply. The company’s investment in Bitcoin shows a profitable ratio of 1.39 in terms of the current value of BTC compared to its cost basis.

Based on the quarter four results for 2023, MicroStrategy witnessed a 6% year-over-year decline in total revenues. The revenue stood at $124.5 million. However, the company successfully pivoted towards cloud-based services and launched MicroStrategy AI, its first AI-based business intelligence tool.

Despite that, MicroStrategy’s financial results for the fourth quarter of 2023 were mixed.

Decline in revenue

It reported loss from operations of $42.8 million, an improvement from the previous year’s loss of $193.7 million. However, the company turned a net income of $89.1 million, or $4.96 per share, a significant rebound from a net loss of $249.7 million, or $21.93 per share, in the fourth quarter of 2022. This turnaround was partly due to the reduced digital asset impairment losses, which were $39.2 million for the quarter, down from $197.6 million in the previous year.

As of December 31, 2023, the carrying value of MicroStrategy’s digital assets was $3.626 billion, reflecting cumulative impairment losses of $2.269 billion since the acquisition. Despite these losses, the original cost basis and market value of the company’s Bitcoin holdings were $5.895 billion and $8.045 billion, respectively, showcasing a substantial appreciation in value.

MicroStrategy’s continued investment in Bitcoin amidst volatile prices means institutional confidence. At press time, BTC remains resilient above the $43,000 level.

Also Read: Michael Saylor: MicroStrategy Earnings; Saylor Hints At Revealing MSTR’s Bitcoin Strategy